Why do my models have black fuzzy bits on them?
It looks like "z-fighting" -- when you have multiple polys that are overlapping (normals facing the same direction) and very close to each other... and then your camera is far away, then the renderer has a hard time figuring out which pixels of which poly to draw first, and you end up with erratic drawing that ends up looking like that.

Are you layering polys that way?